Will Plus500 continue falling, or will it rise again back to 600p? (+15%)

• Plus500 shares -40% from yesterday’s highs after warning on lower profits.
• Financial services firm said profits will be “materially lower” in 2019.
• Now trades 510p (at time of writing).
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Plus500 – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 600p? (+15%). You decide to buy exposure to £10,000 worth of Plus500 using a CFD, at the current price of 510p. To do this, you need £2,000.

Let’s assume Plus500 recovers back to 600p? (+15%). Your profit would be £1500, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. Plus500 falls 9% and hits your stop-loss. Your loss would be £900.

This is provided for information purposes only. It should not be taken as a recommendation.